06.03.2010

H&E drops 37%

Louisiana based H&E Equipment has reported full years 2009 results with revenues down 37 percent to $680 million. Rentals fell 35 percent to $191.5 million, while equipment sales fell 44 percent to $218.9 million.

Revenues in the fourth quarter fell more steeply, declining 47.4 percent with rentals down 43 percent and sales down 63 percent.

The company also posted a loss of $18.1 million of which $8.97 million was a goodwill write-off compared to a $22.7 million impairment last year. The company reduced its total debt during the year by 24 percent to $254 million.

Chief executive John Engquist, said: "The unprecedented challenges our business and sector encountered during 2009 continued into the fourth quarter, as demand remained low and pricing remained weak. We fully expected a challenging quarter and we saw little to no improvement in the segments of the economy that drive demand for our products and services. Despite the difficult environment we faced during the year, we were successful in our efforts to scale our business to current market conditions by focusing on costs, asset management, debt reduction and cash generation."

"As we move into 2010, there are encouraging indicators that could have a positive impact on our business. We believe the recovery in our sector will lag that of the general economy and we expect any improvement in our end markets to occur in the latter part of the year. With this in mind, we will continue our strategy of strengthening our balance sheet through cash generation. This focus better positions our company to take advantage of future opportunities when the recovery begins."